Canadian dollar extends breach of key psychological level

* Canadian dollar weakens 0.3% against the greenback * Touches its weakest since May 2020 at 1.4039 * Price of U.S. oil increases 0.5% * Bond yields ease across a flatter curve By Fergal Smith TORONTO, Nov 14 - The Canadian dollar weakened further beyond a key psychological level against its U.S. counterpart on Thursday, pressured by broad-based gains for the American currency and the potential for U.S. trade tariffs to hurt the domestic economy. The currency touched its weakest intraday level since May 2020 at 1.4039, after briefly moving past the 1.40 level on Wednesday. "Currency forecasters have turned overwhelmingly bearish on the currency in recent months, with domestic weakness seen intersecting with U.S. outperformance and a constant drumbeat of trade threats to drive the exchange rate lower," Karl Schamotta, chief market strategist at Corpay, said in a note. The U.S. dollar continued its relentless march higher against a basket of major currencies as investors bet that higher trade tariffs and tighter immigration under the incoming Trump administration would fuel inflation, potentially slowing the Federal Reserve's interest rate cutting cycle.